Buy-to-let remortgage on property with 80 year lease to fund home improvements on residential property

The situation

Our clients approached Trinity Financial's broker to help remortgage their buy-to-let property to release equity. The funds would be used to pay for home improvements on their residential property.

One of our clients worked at a university, the other as an engineer, and they had run into a challenge while researching mortgage options themselves.

The buy-to-let flat had 81 years remaining on the lease, which meant several lenders were unwilling to consider the property as security for a remortgage. They also wanted to increase the loan-to-value to 75% and the most competitively priced rate possible.

The challenge

Lease length can be a key factor for lenders when assessing buy-to-let properties. Many lenders prefer significantly longer leases and may decline applications where the lease is approaching 80 years.

Because of this, the client had struggled to find a lender willing to offer a sufficiently large remortgage on the property.

They wanted to raise funds from the investment property rather than borrowing against their main residence, so finding a suitable lender was essential.

The solution

After reviewing our client's situation, our adviser researched lenders across the market to identify those with more flexible criteria around lease lengths.

We were able to arrange a buy-to-let remortgage with a large bank, which was comfortable lending on the property despite the 81-year lease remaining.

The mortgage was structured as interest-only, which helped keep monthly payments lower while the property continued to generate rental income.

The outcome

The client secured a two-year fixed rate just below 3.85%, which was a competitive deal for a buy-to-let remortgage given the circumstances.

With the remortgage completed, they were able to release the funds needed to carry out improvements to their residential home. They also did not need to provide us with a work schedule to explain exactly how the money would be spent. 

How did they find Trinity Financial?

The client was referred to Trinity Financial by an existing client, highlighting the value many clients place on trusted recommendations when arranging a mortgage.

Lending solutions with Trinity Financial

Are you looking to buy a property and require expert advice? We’re here to help you find a solution – no matter how complex your circumstances. Our expert brokers have extensive experience providing creative solutions to secure mortgages for our clients.

Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation

The information contained within was correct at the time of publication but is subject to change.

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